The Takaful industry, in all honesty, has been a bit of a late bloomer. While most other sectors within the Islamic finance industry has seen relative progress over the last few years; or at least been a topic of much debate and open discussion, the Takaful sector has been left behind. Despite efforts and encouraging results in some pockets in Southeast Asia – particularly Malaysia and in Pakistan – there has not seemed to be much movement overall.
A cross-sector view of the Takaful industry shows many hiccups still left to be ironed out in order to create significant impetus. For one, the question of a dearth of long-term paper for Takaful institutions to park their cash is still one of the top issues to be remedied. Apart from that, a lack of talent across a multitude of positions, as well as identifying the most effective marketing and distribution channels are amongst the few issues that need to be tackled to create growth.
In this issue of Islamic Finance news Supplements, we highlight the latest in the industry, discuss issues and contemplate possible solutions for the Takaful market; through features, interviews and chapters.
Banking on Asia
Despite a thriving Sukuk market, based on the size and volume of recent issuances and a relatively positive outlook moving forward, the Islamic finance industry has not been able to satiate the voracious demand from Takaful operators for long-term Sukuk investments.
Takaful structures: Flexibility and growth
Takaful as a concept is generally well-understood, but the multiple variants of structure and model – which can differ greatly between countries – are less easy to grasp and can represent significant challenges for participants attempting to analyze performance..
Dubbed as the number one Takaful operator in Malaysia, & Insurance, a subsidiary of – the largest Malaysian bank by assets – has grown from strength to strength over the years.
As the new CEO of in Malaysia, Zafri Abdul Halim is determined to make a difference in terms of growing the Takaful company on a local scale as well as a regional platform.
BancaTakaful: The digital revolution
One of the key developments in the insurance market has been the rise of bancassurance, a distribution channel which offers a means of efficiently accessing a wider customer base. As Islamic insurance grows and overall penetration increases, bancaTakaful is poised for further growth, especially in its key Southeast Asian markets of Indonesia and Malaysia.